USAID Expanded-Agribusiness and
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1 Agribusiness and Trade Promotion (USAID ATP) Expanded Agribusiness and Trade Promotion (USAID E-ATP) USAID Expanded-Agribusiness and Expanding Trade Intra-Regional Promotion Trade (E-ATP) Through Value FY11 Chain Work Development Plan This project is funded by the US Government through the US Agency for International Development
2 The Importance of intra-regional trade The potential of intra-regional trade in agriculture is $20 billion/year in West Africa o Only a tiny fraction is realized A country export-led growth strategy must include a regional export drive and not ignore domestic markets Intra-regional trade promotes: o Regional integration and peace/security o Agricultural growth o Food security and reduces poverty region-wide
3 Agribusiness and Trade Promotion (ATP) USAID-funded regional initiatives o ATP ( ) o Expanded ATP ( ) Objective: Increase the volume and value of intraregional trade in selected agricultural products o Focus on key commodities/corridors o Address the entire span of constraints to regional trade: farm level to regional policies
4 Value Chains under ATP Maize Onion/Shallot Ruminant livestock/meat
5 Value Chains under E-ATP Rice Poultry Millet/Sorghum
6 Focus Corridors for Trade Flows (USAID E-ATP)
7 Focus Corridors for Trade Flows (USAID ATP)
8 Farm level Titre diapo Constraints to Regional Trade o Low productivity, poor quality, and seasonality Transport and logistics infrastructure o Poor condition, harassment and bribes, duration Actors, across value chains o Limited voice, lack of professionalization o Poor access to finance Linkages among actors o Lack of information, contacts, confidence Policies and regulations o Not always enabling or not implemented
9 Constraints: Farm level Issues: Quantity, quality, seasonality Approach: Focus on diffusing successful technologies from one country to another, training those who can train Examples: o Rainy season onions in Niger o Improved parboiling technologies o SRI o Cattle fattening
10 Constraints: Transport and logistics Issues: High losses, slow transport, illegal payments Approach: equipment/infrastructure investments, education/empowerment Examples: o Onion losses 30% - mesh bags o Market infrastructure PPPs o Road harassment and delays road and market shows
11 Focus Road Corridors: USAID ATP
12 Focus Road Corridors: USAID E-ATP
13 Bribes and number of roadblocks Value Chain Bribes paid per 100 km (US$) Number of roadblocks per 100 km Onion Livestock Maize April-June 2011 Onion corridor (1,036 km): Kantchari-Bitou (Burkina Faso)-Bawku-Bolgatanga-Accra (Ghana) Livestock corridor (469 km): Fada N Gourma (Burkina Faso)-Porga-Parakou (Benin) Maize corridor (976 km): Techiman-Paga (Ghana)-Po-Kantchari (Burkina Faso)
14 Roadblocks by type of actor Country Trips Km Local Police Customs National Police Force Other Total Per 100 km Mali Senegal Total April-June Source: ATP project data.
15 Illegal payments by type of actor (CFA) Country Trips Km Local Police Customs National Police Force Other Total Per 100 km Mali 22 1,184 51,568 92,123 56,364 19, ,355 18,527 Senegal ,909 17,318 16,386 1,591 42,205 6,197 Total 22 1,865 58, ,441 72,750 20, ,559 14,025 April-June Source: ATP project data.
16 Constraints: Value chain actor level Issues: Informality of the sector, weak organizations and actors Focus on: institutional support, capacity building Examples: o Association support (COFENABVI, UOFA, AMASSA, APROSSA): Self-assessments with support for organizational structures and services o Finance access: support in business plans, training to financial institutions, warehouse receipt systems o Professionalization of slaughter operations
17 Constraint: Linkages among actors Issue: Poor information flow, lack of confidence and long-term linkages Focus on: market information systems, trade facilitation, formalizing transactions Examples: o Working with Esoko/Manobi platforms o Direct trade facilitation: market facilitators, events Confidence building o Contracts o PPPs: Market infrastructure improvement (Accra, Tamale), processing
18 Interest in market information Burkina Faso Ghana Côte d Ivoire Mali Nigeria Total New users 18 1, ,817 New users to Esoko platform, April-June 2011 Source: Esoko Networks
19 Volume of offers Number of offers and volume by product Country Cereals Cattle Sheep/Goats Onion/Shallot Tons Offers Burkina Faso Ghana Côte d Ivoire Mali Nigeria 3 8, Total 143 9, ,198 Source: Esoko networks Offers Head Offers Head Offers Tons
20 Constraint: Policies Issue: Favorable policies not always implemented/enforced, many unfavorable policies Approach: Advocacy, support to implementation at ECOWAS and national level Examples: o Advocacy on: Cereal export bans, export taxes on onion/livestock Livestock export authorizations/transit fees AI-related trade bans in poultry o ECOWAS Trade Liberalization Scheme policy watch and M&E
21 Conclusions Wide span of activities constraints across value chains Progress slow at regional level, but is taking place: Regional level policies and private sector institutions/individuals needed to facilitate food security and jump start agricultural development are emerging
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